DTL Corporation has a defined benefit pension plan and the accountant has received the following reports from their pension trust for $2018$:

Pension Plan Obligations Pension Plan Assets

Beginning balance $$5,700,000$ Beginning balance $$8,500,000$

Past Service Cost $($Amendment$)2,500,000$ Actual income$($loss$)$ on plan assets $(850,000)$

Interest Cost on obligation $570,000$ Contributions $2,000,000$

Current Service Cost $1,100,000$ Benefit payments $(500,000)$

Benefit payments $(500,000)$ Ending value of assets $$9,150,000$

Ending Value of obligation $$9,370,000$

DTL$$s company records showed:

$$ DTL$$s average employee will receive payments $20$ years in the future and the yield on $20-$year bonds is $10\%.$

$$ Contributions and benefits were paid at the end of the year.

Required:

$1.$ What is the position of the Pension Plan at $2018$ year end?

$2.$ Prepare a pension spreadsheet $($a template has been provided on the next page$)$ to determine the values for the $2019$ journal entries.

$3.$ Prepare the journal entries for $2019$

$4.$ Illustrate that your journal entries resulted in the Dec $31,2019$ fair value being on the balance sheet.

$5.$ Has the position of the pension plan improved? What happened during the year that contributed to the current position?